Medical reimbursement - bills

Tax queries 1349 views 3 replies

Mihir

Wealth Manager

5293 Points Posted on 03 March 2014

Reimbursement of medical expenses incurred by the employee for self or spouse or children or dependent parents is exempt upto Rs. 15,000/- pa.

What kind of medical bills have to be submitted?

Is normal cash memo with name, date, product descripttion and amount is sufficient OR a proper store invoice has to be submitted to the employer?

Thanks.

Replies (3)

Saurabh Anokhchand Jain

Chartered Accountant

1148 Points Posted on 03 March 2014

To claim an exemption for medical expenses up to Rs15,000, as per section 17(2), some conditions should be satisfied:

* The expenses must have been incurred by the employee on his medical treatment or for his family members.

* Such expenses should have been reimbursed by the employer. If the employer does not reimburse such expenses, then they shall never form part of the salary and hence no exemption can be claimed from salary income.

Medical allowance is not the same as reimbursement of expenditure towards medical treatment and the benefit of section 17(2) is available only in case of reimbursement of expenditure by the employer

I think norwal cash memo is sufficent for claiming exemption.

CA Saroj Kumar

Keen to learn something new every moment

2588 Points Posted on 03 March 2014

As per my practical expreience in While Audting of Public comapnies

For claiming medical reimbursement the Employee's submitting the all details of Medical expenditure like

Doctor Fees(Given during the checkup)
Medicin purchase bills
Ant test have have been taken by the patient.
Or any pther type of expendses incurred for patient in realtion to medicin or checkup.
All the expenditure should be solely incurred for above purpose.